BIDU closes higher for the 4th day in a row
Baidu Inc. (BIDU) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 4th day in a row, BIDU finished Thursday at 101.82 gaining $4.90 (5.06%), underperforming the Nasdaq 100 (5.72%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (BIDU as at Mar 26, 2020):
Thursday's trading range has been $5.12 (5.19%), that's slightly below the last trading month's daily average range of $5.90. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for BIDU. Prices continued to consolidate within a tight trading range between 95.05 and 102.44 where it has been caught now for the last three trading days.
One bullish candlestick pattern matches today's price action, the White Candle.
Prices are trading close to the key technical resistance level at 105.61 (R1). After having been unable to move above 102.05 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 102.44. The last time this happened on Monday, BIDU actually gained 5.71% on the following trading day.
While the share is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Its common bullish interpretation has been confirmed for Baidu. Out of 518 times, BIDU closed higher 51.35% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 54.83% with an average market move of 0.56%.